[On Sunday, the Israel Army, in a heavily-criticized move, withdrew its troops from a key terminal along the Gaza border. Officials said the military received an alert of an imminent Hamas attack on Erez.]

The buildup has been taking place amid the visit by Hamas political bureau leader Khaled Masha'al to Teheran. The Saudi-owned A-Sharq Al Awsat daily reported that Iran, in wake of an Israeli announcement of negotiations with Syria, has pledged $150 million as well as new missiles to the Hamas regime in the Gaza Strip during the second half of 2008.

The sources said Hamas was engaged in a major force buildup throughout the Gaza Strip in preparation for conflict with Israel. They said Hamas missile and rocket production increased over the last month while Iranian-trained fighters were deployed in daily border operations against Israel.

Hamas has acquired missiles and rockets that could strike Ashdod and Kiryat Gat, a range of more than 30 kilometers. The sources said the Islamic regime has also accelerated military development and procurement from Iran.

"As long as there is no substantial prevention of smuggling between Sinai and Gaza, and currently there is none, it is only a matter of time until Hamas will acquire rockets that can reach even farther," Diskin said.

The sources said Hamas has mastered Hizbullah tactics that combine mortar and rocket fire as a cover for sabotage and ambushes. They said Hamas demonstrated these tactics in attacks in April and May in which several Israeli soldiers and civilians were killed.

"Hamas used to just launch mortars and fire machine-guns into Israel, thinking that was a sufficient achievement," the source said. "Today, it uses mortar fire as a diversion for lethal operations, such as infiltration."

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